Morning Pack

Singapore Research Team – 6533 9688 research@dbsvickers.com www.dbsvickers.com “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” “Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6398 7954 in respect of any matters arising from or in connection with this report.” Spotlight On (MK) Banking Sector: Indonesia - next growth story • Robust prospects in Indonesia because of low banking penetration; we estimate 20% industry loan growth in 2010, the strongest among ASEAN banks • Indonesian operations for Maybank and RHB Capital can boost growth • Our top picks : Maybank (Buy, RM9.10) offers superior growth while RHB Cap (Buy, TP RM7.30) stands out as a value proposition. (HK) Containerboard Sector: Stay invested • Containerboard manufacturers are raising selling prices by 3-5% in July • Volatility in wastepaper prices is manageable; positive for sustaining profitability • Rolling out new products to improve earnings quality and profitability • Prefer Lee & Man Paper to Nine Dragons (TH) Charoen Pokphand Foods: Higher meat prices BUY Bt21.50 SET : 820.60 Price Target : 12-Month Bt 23.70 • Expect stronger 2Q and 3Q profit vs 1Q10, led by peak export season and higher meat prices • Changing business model towards higher margin andless volatile food business, geographical diversification • Maintain Buy rating and Bt23.70 TP, implying 10% upside (REG) Small / Mid Cap Strategy: Dancing to its own tune • Key investment merit for Korean SMCs is their earnings recovery cycle, which has lagged behind large caps and regional SMC peers • In 2H10, a likely mean reversion of earnings growth between Korean SMCs, and large caps and regional SMC peers, might improve sentiment towards SMCs • We feature 4 stocks with cyclical catalysts (business and consumer spending), and one with company and industry specific catalysts Ideas & Updates SINGAPORE China Fishery Group: Not time to cast new nets HOLD (Downgrade from Buy); S$2.00 Price Target : 12-Month S$ 2.12 (Prev S$ 2.20) MALAYSIA Banking Sector – See Spotlight HONG KONG / CHINA Containerboard Sector - See Spotlight THALAIND Charoen Pokphand Foods : See Spotlight INDONESIA London Sumatra Indonesia: Accumulate on weakness HOLD; Rp7,800; LSIP IJ; Price Target: 12-month Rp8,650 (Prev Rp8,950) KOREA Small / Mid Cap Strategy - See Spotlight DBS Group Research . Equity 12 July 2010 Regional Morning Pack Regional Morning Pack Page 2 Analyst Roadshows & Events 2010* Events Date Location DBSV Analyst HK, Singapore Property 30 Jun – 14 Jul HK/SG/KL Jeff Yau, Mun Yee Lock Regional Mkt Strategy 30 Jun – 17 Jul KL/SG/HK Joanne Goh Singapore Mkt Strategy 30 Jun – 17 Jul KL/SG/HK Janice Chua Hanadaetoo Strategy 26 – 30 Jul US Jay Kim *To register your interest in the above events, please contact your DBSV Sales representative. Market Data Earnings Gth (%) PE (x) 10F 11F 10F 11F Singapore 19.3 14.6 14.1 12.3 Malaysia 18.4 18.0 15.3 13.0 HK HSI 23.3 15.8 13.3 11.5 HK HSCCI (Red) 19.0 10.2 15.0 13.6 HK HSCEI (H) 27.8 18.1 11.7 9.9 Thailand 14.5 12.7 11.4 10.1 Indonesia 16.8 17.7 14.7 12.5 Source: DBS Vickers Key Indices Indices Closed as of 8 Jul 10 % chg vs previous close YTD (%) QTD (%) MTD (%) Asia Taiex 7,609 1.0 -7.1 3.8 3.8 SET 818 0.4 11.3 2.5 2.5 STI 2,897 1.3 0.0 2.2 2.2 Nikkei 225 9,536 2.8 -9.6 1.6 1.6 MXFEJ index 429 1.4 -4.6 1.1